You Paid Off Your Vehicle Loan. Now What?
Paying off a vehicle is a wonderful feeling, right? Once you have paid your loan in full, are you aware of what you should do next?
What You Should Do First
When you pay off the loan on a vehicle, there are a couple of loose ends you should take care of to make life smoother for you in the future. The first thing you should do is make sure you’ve received a letter from the financer, showing that the loan has been paid off. In Minnesota, that letter should include a small manila card that says the lien has been released by the financer.
Let Your Insurance Company Know
The next thing you should do is contact your insurance company. There are minimum insurance requirements when you have a loan against your vehicle and you can review those and adjust them up or down, based on the state minimum requirements for insurance, once your loan is paid off. Not to mention, sometimes you can get a better rate for your insurance once it’s paid off. It’s worth looking into.
Removing the Financer
Last but not least, when you contact your insurer to review your coverage amounts, make sure to alert them that there is no longer a lien against your car or truck based on the loan you just paid off. Your insurer will then remove the financer as the loss payee on your loan. That way, in the future, if you ever have any incidents with your vehicle, the insurance company will not send any payments to the financer that no longer has a lien against your car, but directly to you.
If you have any questions concerning this issue, send us an email at [email protected]